Question 1 - Why do most futures traders lose money?

Not entering a stop loss order as soon as they get a fill.

No discipline.

No money management.

No written trading plan.

No charts.

Emotional trading.

All are reasons why most futures traders lose money.

Question 2 - Here is another checklist as to why most futures traders lose money. Which one does not belong?

Overtrading.

Adding to a losing position.

Directional bias.

Not trading often enough.

Question 3 - Some common mistakes made by beginning traders are:

Trading based on local information and/or local weather conditions.

Trading based on the morning’s news.

Trading without enough information (technical or fundamental).

All of the above.

Question 4 - Some additional pitfalls for all traders, but especially novices, are:

Trading a hot tip from someone “who shall remain nameless.”

Trading on rumors.

Trading based on what they hear “some big trader” is going to do.

Trading without respect for leverage.

All of the above.

Question 5 - Many futures speculators lose because they trade with emotion.

True.

False.

Question 6 - How do successful brokers and traders try to keep profitable trades from slipping away?

They let their feelings be their guide.

They take their gains as soon as the position is profitable.

They use stop orders.

Question 7 - Most traders don’t go to the trouble of figuring risk/reward ratios.

True.

False.

Question 8 - As stated earlier, overtrading is another reason why most futures traders lose money. What is the cause of overtrading?

The lack of a written trading plan.

The need for excitement.

Poor money management.

Impatience.

All of these are causes of overtrading

Question 9 - Most ex-traders surveyed lost the majority of their capital in the minority of their trades.

True.

False.

Question 10 - Trading with too little capital is another reason why most futures traders lose money.

True.

False.